Steiger Company Owned Investment Land Subject to a $715,000 Recourse

Multiple Choice

Steiger Company owned investment land subject to a $715,000 recourse mortgage.Steiger failed to make timely mortgage payments,so the creditor foreclosed.At date of foreclosure,Steiger's basis in the land was $587,300,and the land's appraised FMV was $690,000.Steiger completely settled its recourse debt by paying $25,000 cash to the creditor.As a result of the foreclosure,Steiger recognizes:

A) $102,700 capital gain and $25,000 ordinary loss
B) $612,300 ordinary loss
C) $102,700 capital gain
D) None of the above